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Loss and Loss Adjustment Expense Reserves (Tables)
 6 Months Ended
Jun. 30, 2020
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries
          
          
          
          
 
  
As of June 30, 2020
 
As of December 31, 2019
In millions
  
Balance Sheet Line Item
 
Balance Sheet Line Item
 
  
Insurance
loss
recoverable
 
Loss and
LAE
reserves
 (2)
 
Insurance
loss
recoverable
 
Loss and
LAE
reserves
 (2)
U.S. Public Finance Insurance
  
$
950
 
 
$
495
 
 
$
911
 
 
$
432
 
International and Structured Finance Insurance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Before VIE eliminations
(1)
  
 
1,140
 
 
 
782
 
 
 
1,286
 
 
 
749
 
VIE eliminations
(1)
  
 
(547
) 
 
 
(259
) 
 
 
(503
) 
 
 
(280
) 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total international and structured finance insurance
  
 
593
 
 
 
523
 
 
 
783
 
 
 
469
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total
  
$
1,543
 
 
$
1,018
 
 
$
1,694
 
 
$
901
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
(1) -
Includes loan repurchase commitments of $524 million and $486 million as of June 30, 2020 and December 31, 2019, respectively.
(2) - Amounts are net of expected recoveries.
Schedule Of Loss And Loss Adjustment Expenses Reserves
 
In millions
 
 
Changes in Loss and LAE Reserves for the Six Months Ended June 30, 2020
 
  
 
 
Gross Loss
 
and
LAE

Reserves as of

December 31,

2019
(1)
 
 
Loss

Payments
 
 
Accretion
 
of
Claim
 
Liability

Discount
 
 
Changes in

Discount
 
Rates
 
 
Changes in

Assumptions
 
  
Changes in

Unearned

Premium

Revenue
 
  
Other
 
  
Gross Loss
 
and
LAE

Reserves as of

June 30,
 
2020
(1)
 
$
901
 
 
$
(97
) 
 
$
6
 
 
$
(87
) 
 
$
291
 
  
$
7
 
  
$
(3
) 
  
$
1,018
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
(1) - Amounts are net of expected recoveries of unpaid claims.
Schedule Of Insurance Loss Recoverable
               
               
               
               
               
               
 
  
 
 
  
Changes in Insurance Loss Recoverable
 
 
 
 
 
  
 
 
  
for the Six Months Ended June 30, 2020
 
 
 
 
In millions
  
Gross
Reserve as of
December 31,
2019
 
  
Collections
for Cases
 
 
Accretion
of
Recoveries
 
  
Changes
 
in
Discount
Rates
 
  
Changes in
Assumptions
(1)
 
 
Gross
Reserve
as of
June 30,
2020
 
Insurance loss recoverable
  
$
1,694
 
  
$
(25
) 
 
$
9
 
  
$
156
 
  
$
(291
) 
 
$
1,543
 
  
 
 
     
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
 
(1)
 
 -
Includes amounts related to paid claims and LAE that are expected to be recovered in the future.
Schedule Of Financial Guarantees And Related Claim Liability
The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of June 30, 2020:
 
               
               
               
               
               
 
  
Surveillance Categories
 
$ in millions
  
Caution
List
Low
 
  
Caution
List
Medium
 
  
Caution
List
High
 
  
Classified
List
 
 
Total
 
Number of policies
  
 
54
 
  
 
17
 
  
 
-
 
  
 
223
 
 
 
294
 
Number of issues
(1)
  
 
19
 
  
 
4
 
  
 
-
 
  
 
102
 
 
 
125
 
Remaining weighted average contract period (in years)
  
 
6.2
 
  
 
6.8
 
  
 
-
 
  
 
7.5
 
 
 
7.1
 
Gross insured contractual payments outstanding:
(2)
  
  
  
  
 
Principal
  
$
1,628
 
  
$
218
 
  
$
-
 
  
$
3,691
 
 
$
5,537
 
Interest
  
 
2,084
 
  
 
91
 
  
 
-
 
  
 
1,533
 
 
 
3,708
 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total
  
$
3,712
 
  
$
309
 
  
$
-
 
  
$
5,224
 
 
$
9,245
 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Gross Claim Liability
(3)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
1,102
 
 
$
1,102
 
Less:
  
  
  
  
 
Gross Potential Recoveries
(4)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
1,718
 
 
 
1,718
 
Discount, net
(5)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(111
) 
 
 
(111
) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Net claim liability (recoverable)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
(505
) 
 
$
(505
) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Unearned premium revenue
  
$
11
 
  
$
3
 
  
$
-
 
  
$
37
 
 
$
51
 
Reinsurance recoverable on paid and unpaid losses
(6)
  
  
  
  
 
$
13
 
 
(1) -  An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.
(2) -  Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
(3) -  The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.
(4) -  Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.
(5) -  Represents discount related to Gross Claim Liability and Gross Potential Recoveries.
(6) -  Included in “Other assets” on the Company’s consolidated balance sheets.
The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2019:
 
               
               
               
               
               
 
  
Surveillance Categories
 
$ in millions
  
Caution

List

Low
 
  
Caution

List

Medium
 
  
Caution
List
High
 
  
Classified
List
 
 
Total
 
Number of policies
  
 
45
 
  
 
19
 
  
 
-
 
  
 
212
 
 
 
276
 
Number of issues
(1)
  
 
13
 
  
 
5
 
  
 
-
 
  
 
94
 
 
 
112
 
Remaining weighted average contract period (in years)
  
 
7.3
 
  
 
7.2
 
  
 
-
 
  
 
7.9
 
 
 
7.7
 
Gross insured contractual payments outstanding:
(2)
  
  
  
  
 
Principal
  
$
1,546
 
  
$
248
 
  
$
-
 
  
$
3,794
 
 
$
5,588
 
Interest
  
 
2,107
 
  
 
110
 
  
 
-
 
  
 
1,668
 
 
 
3,885
 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total
  
$
3,653
 
  
$
358
 
  
$
-
 
  
$
5,462
 
 
$
9,473
 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Gross Claim Liability
(3)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
965
 
 
$
965
 
Less:
  
  
  
  
 
Gross Potential Recoveries
(4)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
2,184
 
 
 
2,184
 
Discount, net
(5)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(453
) 
 
 
(453
) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Net claim liability (recoverable)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
(766
) 
 
$
(766
) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Unearned premium revenue
  
$
6
 
  
$
3
 
  
$
-
 
  
$
39
 
 
$
48
 
Reinsurance recoverable on paid and unpaid losses
(6)
  
  
  
  
 
$
19
 
 
(1) -  An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.
(2) -  Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
(3) -  The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.
(4) -  Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.
(5) -  Represents discount related to Gross Claim Liability and Gross Potential Recoveries.
(6) -  Included in “Other assets” on the Company’s consolidated balance sheets.